GSTR-1 Filing– Process, Due Date, Eligibility, and Late Fees

To comply with GST requirements, all those under the GST regime must file GST returns. These returns specify income details for clarity and calculate the amount of tax you are required to pay to the government. It is important to remember that you will need GST-compliant invoices for sales and purchases if you wish to file GST returns. When it comes to filing your taxes, GSTR 1 is one of the necessary forms. This is because the information you file under GSTR 1 is used as a base for all other forms to be auto-populated. To understand this better and comply with GST norms, read on for more information on GSTR 1.

What is GSTR 1?

Form GSTR-1 is a monthly or quarterly return that must be submitted by all regular and casual registered taxpayers who make outward supplies of goods and services. This form includes details of all outward supplies, providing a comprehensive account of all goods and services supplied during the specified period.

Format of GSTR 1

Understanding the GSTR-1 format is essential for businesses to meet their compliance requirements and avoid charges, interest, and penalties. This format includes various sections and fields where businesses need to give detailed information. The GSTR-1 format consists of 15 tables, where suppliers must enter details about the goods or services they have supplied during a particular month (or quarter if they have opted for QRMP). However, not all these tables are compulsory for every supplier.

Suppliers must complete the tables that match the specific features of their business and the type of supplies they provide. Here are the details about the GSTR-1 tables:

Eligibility criteria for Filing GSTR-1

Any person or business registered for GST as a regular taxpayer must file a GSTR-1 return, even if there are no outward transactions during that period. If a taxpayer fails to file this return, they will face penalties. Since July 2020, those who have not submitted their GSTR-1 can use an SMS-based facility to do so.

The following categories of GST-registered individuals are exempt from filing GSTR-1, as provided on the GST Portal:

1. Taxpayers responsible for collecting Tax Collected at Source (TCS) under Section 52 of the CGST Act, 2017: This section requires Electronic Commerce Operators (ECOs) to collect tax on certain supplies made through their platform
2. Composition dealers: Businesses with an annual turnover of up to ₹1.5 Crores are exempt from filing GSTR-1 if they choose the composition scheme
3. Input service distributors: This refers to a business office that receives tax invoices and distributes the tax credit to its branches
4. Non-resident taxable persons: Individuals who occasionally supply goods or services but do not have a permanent business location or residence in India
5. Service providers in Online Information and Database Access or Retrieval services (OIDAR): Businesses responsible for payment as outlined in Section 14 of the IGST Act, 2017
6. Taxpayers liable to deduct Tax Deducted at Source (TDS) under Section 51 of the CGST Act, 2017: This includes departments or establishments of the State or Central Government, local authorities, and governmental agencies notified by the Government based on the council's recommendation

GSTR-1 due date

Here is a similar explanation for the content about GSTR-1 due dates based on turnover:

The due dates for filing GSTR-1 are determined by a taxpayer's aggregate turnover:

• For businesses with a turnover of more than Rs. 5 crore: These businesses are required to file GSTR-1 every month. The returns must be filed by the 11th of the subsequent month. For example: For January 2024, the due date is 11th February 2024. For February 2024, the due date is 11th March 2024. This pattern continues for each subsequent month.
• For businesses with a turnover of up to Rs. 5 crore under the QRMP scheme: These taxpayers can opt to file GSTR-1 every quarter. The returns for each quarter are due by the 13th of the month following the quarter. For example: For October to December 2023, the due date is 13th January 2024. For January to March 2024, the due date is 13th April 2024. This pattern continues for each subsequent quarter.

This schedule allows businesses to comply with GST regulations based on their turnover and the chosen filing frequency..

Who is liable to file GSTR 1?

Every registered dealer is liable to file GSTR 1. It is mandatory irrespective of the transactions and sales for a particular month. Even if there are no sales or transactions, you, as a registered dealer, have to file GSTR 1. The below individuals/ entities are exempt from filing GSTR 1:

• An input service distributor (ISD): If your business receives invoices for services used by your branches, you fall in the category of an input service distributor under GST.
  
• Composition dealer: You are a composition dealer, if you have registered your business under GST composition scheme. From 1 April 2019, companies with an annual turnover of up to Rs. 1.5 crores can opt for the composition scheme.
• A supplier of online information, database access, or retrieval services.
• Non-resident taxable people: You are a non-taxable resident person, if you import goods and services from outside India or are in charge of managing a business on behalf of a non-resident Indian (NRI).
• A taxpayer is liable for collecting tax at source (TCS), or a taxpayer is responsible for deducting tax at source (TDS).
  

How to file GSTR 1?

Here are the steps that you need to follow to file GSTR 1.

• Use the provided user ID and password to log in to the GSTN portal.
• Look for ‘services’.
• Click on ‘returns’.
• Select the month and year for which you would like to file for on the ‘returns dashboard’.
• Once the returns for the specified period are displayed, click on ‘GSTR 1’.
• You can then prepare the returns online or upload the returns.
• You can choose to add invoices or upload the invoices.
• Double check the form to ensure it is filled correctly with accurate details.
• Click on ‘submit’.
• Once the entered information gets validated, click on ‘file GSTR 1’.
• Digitally sign the form or E-sign it.
• Click on ‘yes’ once a pop-up is displayed on your screen to confirm your decision to file GSTR 1.
• Wait for an acknowledgement reference number (ARN) to be generated.

Read more - How to check your GST registration (ARN) status

Filling the GSTR 1 form: Explained

GSTR 1 has 13 different sections that need to be filled out by you. However, a few of these may be auto-populated. Let us look at the 13 various fields below.

• An auto-populated result for the GSTIN of the person filing the return.
• An auto-populated result of the name of the person filing the return.
• The total turnover of the previous financial year needs to be filled once, and then will automatically auto-populate the form with the closing balance henceforth.
• Details of the outward supplies to a registered person are taxable.
• Details of the outward supplies (inter-state) to an end consumer where the transaction exceeds Rs. 2.5 lakh.
• Zero-rated supplies as well as deemed exports (to EOUs and SEZs) along with details of invoice, shipping bill, or bill of export.
• A total consolidation of all outward supplies for the month, including through e-commerce operators and up to Rs. 2.5 lakh.
• Details of exempted, non-GST, and nil supplies if they are not already mentioned.
• Any revisions/ amendments that need to be made towards the outward supplies of previous tax periods, including debit/ credit notes and refund vouchers.
• Details of outward supplies are listed on the basis of HSN codes.
• Any tax due to advance payment received.
• Any taxes paid for the previous periods or reporting periods.
• Documents issued during the period for which GSTR 1 is being filed including invoices, revised invoices, credit notes, and debit notes.

What do you need to file GSTR 1?

You need to have the below documents and information ready with you to file GSTR 1.

• A valid and genuine Goods and Services Tax Identification Number (GSTIN).
• The user ID and password to sign into the portal.
• A  digital signature certificate unless you can e-sign the form as per your categorisation as a supplier.
• Aadhaar number if you are going to e-sign the form.
• Access to the mobile number mentioned on your Aadhaar card.

What are the late fees that can be incurred on GSTR 1?

If you miss the deadline to submit your GSTR 1 return, you will have to pay a late fee. This fee is calculated based on the rules given below. Moreover, if you file your GSTR 1 late, you will also have to pay interest on the unpaid tax. This interest is charged at an annual rate of 18%.

To help you understand what late fees you may face, we have provided a table. This table shows the late fees depending on your turnover.

Filing GSTR 1: What do you need to keep in mind?

Filing returns for your business can sometimes be a little tricky. However, if you are careful, you need not worry about confusion or mistakes. So, look at a few pointers to keep in mind while filing GSTR 1.

• Ensure you have entered the correct GSTIN code and HSN codes to avoid any discrepancies.
• Confirm whether the transaction falls under the intra-state or inter-state category.
• You can change uploaded bills multiple times; however, you will not be able to change an invoice once the return has been submitted.
• You cannot revise the return once you have submitted the same and need to make any corrections in the next month’s GSTR 1.
• GSTR 1 is part of GST registration and GST return filing and you do not have to pay any taxes until the filing of GSTR-3B.
• Upload invoices at various intervals during the month to avoid bulk uploads.
• Companies like LLPs (limited liability partnerships) and FLLPs (foreign limited liability partnerships) are obligated to provide a digital signature certificate (DSC).
• Suppliers such as proprietors, partnership concerns, HUFs, and others can E-sign the GSTR 1.
• If the point of supply has changed and is now in a different state, the SGST charge will be as per the new state.
• Once a recipient has accepted the details in the GSTR 1, you cannot make any changes to the tax invoice. However, you can issue a credit note or a supplementary invoice to make room for the changes.
• File GSTR 1 easily by using third-party software.

While you may already know simple procedures such as how to calculate GST, now you are sure to have a better understanding of the finer aspects of GSTR 1.

How to revise GSTR-1?

To revise GSTR-1, follow these steps:

1. Log in to the GST portal using your credentials.
2. Navigate to the 'Services' tab and select 'Returns' from the drop-down menu.
3. Under Returns Dashboard, select 'Financial Year' and 'Return Filing Period' for which you want to revise GSTR-1.
4. Click on the 'Prepare Online' button next to GSTR-1.
5. Once the form opens, make the necessary changes to the details you want to revise.
6. After making the changes, click on the 'Save' button to save the revised information.
7. Review the revised details to ensure accuracy.
8. Once you're sure the changes are correct, click on the 'Submit' button.
9. You'll see a confirmation message. Confirm to file the revised GSTR-1.
10. After filing, you'll receive an ARN (Acknowledgement Reference Number) for the revised return.

Remember, you can only revise GSTR-1 for a particular tax period until the filing due date of the next month's return. After that, you won't be able to revise it. Also, make sure to double-check all revisions for accuracy before submitting them.

Additional read: GST Calculator

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